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As mentioned by others, how the sites store password is irrelevant. User should use a different password for every site. Imagine that a site implements proper password storing technique. Once it is compromised, hackers can install their own code to intercept passwords entered by users of the site. I used to play EVE online a while ago. PVP there is insane. One group spied on the other. I belonged to an alliance that modified standard forum software to keep a copy of a users password in a clear text. This password was then used to see if it works on enemy forums. Moreover, they sometimes displayed "wrong password" message, even if the password entered was correct. In a typical scenario when a user is presented with a "wrong password" message he is trying other passwords he usually uses. That allowed them to harvest even more possible password. Again, everybody should use a different password for each site.
Toggle Commented Dec 15, 2010 on The Dirty Truth About Web Passwords at Coding Horror
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Dec 14, 2010